Gold Up, USD Down, Stocks Recovering + Commodities

Notes: Markets await US NFPs data, expected at 0830 EST (1330 GMT), for clues about the health of the world’s biggest economy which could influence FOMC monetary policy. NFPs for November are expected to fall by 200,000 jobs. US unemployment and wage data are also expected Friday. Markets will be quiet until the US NFPs figure comes out,

In Asia

Gold: Gold prices edged higher Friday and were on track for their best week in 15

Spot gold climbed 0.2% to $1,239.90 oz by 0443 GMT, having hit a near 5-month highs at $1,244.32 oz in Thursday’s session. With a rise of 1.5% this week, gold looked set to mark its best gainer since the week of 24 August

US gold futures were a bit higher at $1,244.2 oz..

Gold participants were hopeful after the WS-J reported that Fed officials were considering whether to signal a new wait-and-see mentality after a likely interest rate increase at their meeting in December.

Gold is sensitive to monetary policy changes. If there is a slowing down in Fed interest rate hikes, I think by the end of this year $1,250 to $1,260 should be easily reachable for gold.

Higher interest rates make gold less attractive since it does not pay interest and costs to store and insure.

Gold-backed ETFs registered inflows in all the world’s major regions in November, as volatile stock markets fueled flight-to-safety buying, the World Gold Council said Thursday.

Silver was unchanged at $14.47 oz, while Palladium slipped 1% to $1,197.00 oz.

Energy: OPEC agreed to a Crude Oil output cut Thursday, but awaits a commitment from non-OPEC heavyweight Russia before deciding the exact volumes for a production reduction aimed at propping up prices, but prices fell Friday

ICE Brent Crude Oil futures fell as much as 5%to below $59 bbl on fears that there could be no deal, Brent Crude Oil is trading at $59.50 bbl at 0144 GMT, down 56c, or 0.9% from their last close.

NYMEX WTI Crude Oil January futures fell $1.57 (-3.5%) to $51.24 bbl

US Crude Oil inventories fell 7.3-M bbl last week, the !st drawdown since September, as net imports hit a record low of 4-M BPD the US Energy Information Administration said Thursday.

Stocks: Asian shares fought to sustain the slimmest of recoveries, as the arrest of smartphone maker Huawei’s CFO may further sour US-China relations.

USD: The USD weakened on renewed speculation of an imminent pause in the US Fed’s tightening cycle. .DXY weakened, pressured by worries about lower US long-term Treasury yields.

Commodities

Agriculture Grains: US Soybean futures fell for the 1st time in 5 sessions Thursday on concerns about a US-China trade truce that has yet to produce a resumption of US Soybean sales to China.

Corn followed Soybean lower, although declines were largely offset by solid export demand. Wheat was pressured by muted export demand as rival suppliers such as Russia continue to challenge US grain in global markets.